How To Find Good Real Estate Investments

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When It Comes To Real Estate Investments Whats A Good Deal

12 Amazing Strategies to Find Great Real Estate Investing Deals

Real estate investments are a good way to build wealth and have financial freedom. A key part of successful real estate investing is finding the best real estate deals on the market. When purchasing an investment property, clever investors ensure that they are getting a great deal. However, getting a good real estate deal is usually not easy, particularly for first-time investors. So, how do you know if a real estate deal is a good one? In this article, we discuss what makes a good deal in real estate. Read on to find out.

What Is a Great Real Estate Deal? Things to Look For

1. Low listing price

An investment propertys listing price is critical when looking for a good real estate deal, depending on your financial capacity. As a real estate investor, you should never purchase what you cant afford. An expensive real estate investment property will usually have high operating costs too. Purchasing an investment property below market value could provide you with a higher return on investment.

To know whether the purchase price of an investment property for sale is reasonable, you need to compare it with its fair market value. If the listing price is lower than the fair market value of the property, it would probably be a good real estate investment deal. Consider doing a real estate appraisal to estimate the value of the rental property for sale.

2. A profitable location

3. High rental income

4. Low rental expenses

Rent Out Space In Your Home Or On Your Property

This is probably the easiest way to make money in real estate through direct participation. If you already own a home, you can pick up some extra income by renting out space.

Im saying space for a reason. Most people think in terms of renting out a room to a border. Thats one way to do it.

You can also rent out part or all of any of the following:

  • An outbuilding on your property
  • A corner of your land

Any of these rental arrangements can provide an extra income source, in the same way as renting a room to a border. People and businesses have all kinds of space needs. In a lot of cases, they just need extra space to store their stuff or vehicles.

This is easier to do in some locations than in others.

If your home is located in a rural area, an older downtown area, or in a community that has lax property use restrictions, this can be a real alternative.

But if you live in a suburban area, with tight property use restrictions, youll run into legal obstacles. And if you live in a neighborhood with a homeowners association , dont even think about it.

But if your house is located in the right area, and you have extra space, this is a pretty easy way to make extra money in real estate. Knowing where to invest in real estate is key to success in your real estate ventures.

You Should Not Be Scared By Diversification

Diversification is the name of the game. And just as you should diversify with all other types of investing, so it should be with rental real estate.

Even if rental properties are your primary investment, you should still have some money invested in other assets. This should include, first and foremost,bank investments for your cash cushion, but also financial assets, like stocks, bonds, and funds. They may perform well during times when your rental real estate isnt doing so well.

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Remember To Renew Your Leases

If mom-and-pop landlords have one glaring blind spot, its the failure to renew tenant leases in a timely manner, according to George.

Youd be surprised how many landlords dont renew their leases every year, so theyre letting their tenants go on month-to-month leases, she says. Whats wrong with that? Whats wrong is, their whole thinking is that now, if I want to get my tenant out, I cant because now theyre not strapped to a lease.

Also, they cant raise rent, says George. The only way you can change rent is if you have them sign a form changing the lease every year. Thats how you keep your tenants in check. When you let it slide like that, it can be really difficult to get your tenants back on track, George says.

Depending on the state, county and city where the property is located, landlords can give notice of eviction for a specified period. In California, where George is based, the state requires landlords to give 60-days notice for tenants who have lived in the property for more than a year , though the situation may be different in rent-controlled cities. The landlord also might offer a new lease contract at the same time.

Tips On How To Find Investment Properties

How to Find Good Real Estate Investments

This article contains 5 tips to find investment properties that other investors don’t know about. I used these tips to grow my portfolio to 22 apartments.

About The Author:

There’s an old saying in real estate that you make money when you buy property, and not when you sell. This basically means that your future profit is determined by the price you purchase a property for.

In my experience, I’ve found this to be true. All the best deals I’ve done started with purchasing a property at a great price that generated great cash flow and substantial appreciation with minor upgrades.

Unfortunately, in today’s market, finding properties at a good price can be difficult. It’s common for properties listed at good prices to get several offers over list price.

Two major factors that helped me grow my portfolio of 22 apartments quickly were:

  • Finding good deals that let me refinance my capital out to buy more properties
  • Only purchasing one property that was actually listed on the MLS

This article will cover my top 5 tips to find real estate investments at a great price.

JUMP TO SECTION

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My Own Failed Attempt At Becoming A Real Estate Entrepreneur

Speaking of going horribly wrong, I chronicled my own failed real estate investing venture in 7 Lessons I Learned From Failing at Real Estate Investing.

This is a cautionary tale from yours truly. Remember how I wrote above on TV it always works? That was my mistake thinking it would work just like it does on TV.

Real Estate Investing Rule #1 nothing works the way it does on TV ever!

I fell for the myth that learning how to invest in real estate was going to be easy. Thats the way they make it look. But I was stepping way outside of my area of expertise. Financial planning is what Im good at. Turns out that real estate isnt.

I dont want to sour you on investing in real estate. A lot of people are making a lot of money by investing in it. I know a few, and Im sure you do too.

But real estate investing is more challenging than investing in paper assets, like stocks and mutual funds.

If youre actually investing in properties directly, its a very hands-on affair. Even if youre not getting your hands dirty flipping houses, you still have to get involved in the not-always-pleasant business of buying and selling.

Not everyones cut out for that.

If, on serious self-assessment, you recognize youre not ready to learn how to invest in property, youre better off to leave real estate investing for those who are well suited for it. Read my article to learn how NOT to invest in real estate.

How To Find Investment Properties For Sale By Searching Off

The best deals are those that havent hit the market yet. Once the property hits the MLS, youre going to be in a bidding war with others considering buying the same property. In other cases, youre trying to find homes before they go up for auction on the courthouse steps. The best way to find these properties is to network with realtors. Raise the cash to pay for these properties, because distressed sellers want to close on the deal as quickly as possible.

Then begin networking with realtors. Prove to them that you can afford to buy properties you want to buy because they dont want to waste their time or that of their distressed sellers. Once they know youre a serious buyer, discuss the types of properties you want to buy. You may begin to get leads on homes that are going to be sold to settle an estate or as part of an upcoming divorce.

You may learn about distressed sellers who will sell to you to avoid having a foreclosure on their credit reports. In summary, realtors are one of the best resources available to those seeking investment properties for sale. Cultivate relationships with several realtors so that youll have a steady stream of leads. Just make sure you give each of the businesses if you want them to continue working with you.

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Explore Real Estate Websites

House hunting websites like Realtor.com®, Trulia, Zillow, and ForSaleByOwner.com can be a great way to find properties that are not listed on the Multiple Listing Service . Each site can give you an idea of whats available, how much you can get for your desired price, and the current trends in the housing market.

These sites may also offer incentives for working with their directory of real estate professionals the Realtor.com® Buyer Cash Rewards program allows homebuyers to earn up to 0.3% of the purchase price when buying a home with one of their Realtors.

However, its important to note that some sites may not have up-to-date information on their available listings. Its essential to conduct thorough research on any properties youre considering, or share them with a Realtor to see if the information on the listing is correct.

Success Requires A Long

How to Find Private Money for Real Estate Investing!

The unit Kisner has held for 13 years has had two tenants and low maintenance, while the other has had three tenants in four years the last one a costly eviction.

Hes taking the same advice he gives his clients.

The way that people get in trouble with almost all investments is, they just dont hold onto things long enough, Kisner says. With rentals, if you break even on a cash-flow basis, thats actually not too bad because youre paying down the principal and building equity that way. Then, you hopefully also see some appreciation.

So if youre looking to make money in real estate, youll want to think long term. As you pay down or eliminate principal over the years, you should be able to grow your cash flow.

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Other Real Estate Professionals

It is easy to view other real estate investors as competition, particularly those within your market area. However, I always encourage investors to think of other like-minded professionals as valuable contacts rather than competitors. Everyone you come into contact with is often either a potential lead or the source of a referral. Keep this in mind when networking, as you never know who your next deal might come from. That said, do your best to network with the following contacts:

While these four sources can very easily help you find real estate deals, they are by no means the only people you should reach out to. Consider anyone with a connection to the housing industry to be a viable source for real estate leads. That means you should constantly strive to better relationships with title agents, insurance agents, hard-money lenders, building department officials, and even friends or family members.

Tips For Finding Real Estate Deals

In order to find the best real estate deal, you need to go the extra mile and market in ways your competition isnt. This means honing in on what works in your area in order to identify the best leads. A good place to start is by researching different marketing strategies and then testing them in your area. Through careful planning and implementation you can find options that are both cost effective and efficient.

The list below reveals several marketing ideas that will help you generate reliable real estate deals:

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Wholesalers Of Real Estate

Investors willing to handle renovation work themselves may find working with a real estate wholesaler an excellent way to find investment property with instant equity. Unlike a fix-and-flipper, a wholesaler doesnt close on the deal or do any of the needed renovations. Instead, wholesalers locate motivated sellers, put the property under contract, estimate repairs and after repair value , then assign the purchase and sale agreement to another investor in exchange for a wholesale fee.

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Find best of the investment tips for Beginners.

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UpNest is a no-cost service for home sellers and buyers to find the best real estate agents locally. The UpNest platform allows you to compare multiple agents in your area so you can compare reviews, commission rates, previous sales, and more.

Our network agents have been carefully vetted and often offer competitive, lower than average commission rates to UpNest customers. There is no obligation to sign up with one of our network Realtors, but when you can potentially save thousands on commission why wouldnt you? If youre ready to get started, just enter your zipcode below!

What is an investment real estate agent?

An investment real estate agent is a Realtor licensed in helping investors finding properties prime for investment opportunities. While theres no specific certification or training, they need to know how investor financing works, especially things like 1031 exchanges, balloon mortgages, and different types of commercial real estate.

Do investors use real estate agents?

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Active Vs Passive Investing

An important distinction to make when choosing an investment strategy is between active and passive investments. Active strategies, as the name implies, require a more hands-on management approach. For example, rehabbing a house is considered an active investment strategy. You will be in charge of coordinating renovations, overseeing contractors, and ultimately ensuring the property sells. Active strategies require more time and effort, though they are associated with large profit margins.

On the other hand, passive real estate investing is great for investors who want to take a less involved approach. Examples of passive real estate investing include REITs, buy and holds, or rental property ownership. With these strategies, you can enjoy passive income over time while allowing your investments to be managed by someone else . The only thing to keep in mind is that you can lose out on some of your returns by hiring someone else to manage the investment. Overall, the right investment approach will depend on your schedule, skill level, and finances.

Best Cities For Foreign Investment In United States Real Estate

According to an old survey of the Association of Foreign Investors in Real Estate , the United States was deemed the number one country for planned real estate investment and the 5 best cities for foreign investment in United States real estate are:

With 58% of respondents votes, the US remains the country considered the most stable for real estate investment, and 86% said they plan to maintain or increase their investment in US real estate.

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Find Investment Property By Working With Real Estate Wholesalers

Wholesalers find properties, often distressed, and buy them at a bargain price. They then shop for buyers. Wholesalers may advertise that they buy houses from divorcing couples, estates that need to be settled, rentals where tenants wont pay the rent, homes in need of dire repairs, and sellers who need to close as soon as possible.

These sellers get 50 to 80 percent of what the house is worth, but they get the cash they need to settle their financial affairs or just move on in life. In other cases, the wholesaler buys the contract for the home and then shops for a buyer. Wholesalers then sell the house to someone else. This may be to the general public, but these properties are regularly sold to investors.

Buying investment properties from wholesalers has several advantages. You dont have to shop around for the deals. Youre still free to assess the condition of the property and its relative price. They may have several investment properties for sale that you can choose from. And you dont have to pay for the double closing if youre going to fix and then rent out the property.

How To Benefit From A Wedge Agreement

How To Find Investors For Real Estate Investing

Any seasoned real estate investor would tell you that finding wedge deals in real estate is difficult. A house does not fall into your lap by accident. You must conduct a study in order for the plan to work for you.

As a result, enthusiastic real estate investors looking for house deals spend more time selecting potential properties. While real estate wedge deal specialists have several methods for detecting a wedge bargain, here are a few things to think about that will help you accomplish it far more quickly.

  • Find Eager Sellers

Only some sellers are desperate to sell their homes at any price. Some sellers have personal concerns that play a significant part in selling the property for less than the market value. You should be on the watch for sellers who are going through a divorce, are in debt, or have been displaced.

Because of their circumstances, these sellers are more driven to sell.

  • Find Properties In Terrible Condition

Another method to make the strategy work is to hunt for properties that require renovation specifically. In real estate investing, appearance is everything. A buyer will never commit to a property that appears to be in disrepair. Modern homes sell for much more and much faster, regardless of price. A failing or in poor condition property will sell for much less.

So, even if you’re looking at properties in bad shape, not everyone will work for a wedge bargain.

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